Trump tweets 'stop negotiating' stimulus bill, tanks stock market
President Donald Trump tweeted on Tuesday that he wants his representatives "to stop negotiating until after the election" on a much-needed stimulus bill sending the stock market tanking.
The SP500, a collection of the 500 largest American companies, fell about two percent in less than 30 minutes after the President's tweet. The SP500 dropped from about 3,429 points at 2:45 (ET) to 3,360 points at 3:10.
Trump's tweet comes after countless experts have warned of dire economic consequences of not passing a stimulus bill.
"In one of his strongest appeals to date, Federal Reserve Chair Jerome Powell warned of a weak U.S. recovery without sufficient government aid and said providing too much stimulus wouldn’t be a problem," Bloomberg reported on Tuesday.
“Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Powell told a virtual conference hosted by the National Association for Business Economics via Bloomberg. “By contrast, the risks of overdoing it seem, for now, to be smaller. Even if policy actions ultimately prove to be greater than needed, they will not go to waste.”
Americans need stimulus now and can't wait any longer. The stock market knows that and will likely adjust accordingly (go down) if stimulus is not passed before the election.
Trump's tweet also raises questions of his mental stability considering he is known to be on many different drugs to treat the coronavirus that could impact his mental capabilities.
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Ryan is a student at the University of North Carolina at Chapel Hill majoring in Business Journalism. He has written in the past for SB Nation's Silver and Black Pride, USA Today Sports Media Group, North Carolina Business News Wire, the Daily Tar Heel, and has worked with Ice Cube's BIG3 basketball league.